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PDS Financial Corporation Reports Q3 Revenue Growth of 15% And Earnings Per Share of $0.05

For the third quarter of 2000, the Company reported net income of $177,000, or $0.05 per diluted share, compared with a net loss of $(414,000), or $(0.11) per diluted share, in the third quarter of 1999. The Company reported revenues of $11.3 million for the quarter, an increase of 15% from $9.8 million in the prior year quarter.

The improvement is primarily attributable to an increase in revenues from equipment sales and sales-type leases of $6.2 million for the quarter ended September 30, 2000, compared with $1.7 million in the prior-year period.

The Company completed $8.1 million in originations during the quarter ended September 30, 2000, compared to $3.5 million in the year earlier quarter. The Company shipped approximately 2,000 and 1,280 gaming devices in the quarters ended September 30, 2000, and 1999, respectively. Such shipments include games sold, as well as games placed with customers under lease agreements.

For the nine-month period ended September 30, 2000, the Company reported net income of $582,000 or $0.16 per diluted share, compared with a net loss of ($451,000), or ($0.12) per diluted share, in the same period of 1999.

Revenues for the nine months ended September 30, 2000, increased 60% to $43.3 million compared to $27.1 million in the same period last year. Revenues from equipment sales and sales-type leases increased to $27.5 million for the first nine months of 2000, compared with $9.8 million in the prior-year period.

The Company completed $19.4 million in originations during the nine-month period ended September 30, 2000, compared to $57.1 million in the same period of 1999. The Company shipped approximately 3,600 and 4,000 gaming devices in the nine months ended September 30, 2000, and 1999, respectively.

``During the quarter, the Company began doing business as 'PDS Gaming' to better reflect our diversified growth strategy within the gaming industry. As part of that, we changed the name of our reconditioned gaming device division, 'Slot Source', to 'Casino Slot Exchange', the marketing and distribution web site we acquired earlier this year.

"This quarter's results reflect the positive momentum generated by Casino Slot Exchange as well as the Finance and Lease Division. Additionally, we are pleased to report that in October, our Table Games Division shipped our first Digital 21(TM) tables, the first game on the DCS(TM) platform,'' stated Peter Cleary, President and Chief Operating Officer.

``Our management remains focused on implementing our business strategy and growing each of our three business units in order to build long term shareholder value.''

During the quarter, a significant customer failed to make its regularly scheduled payments. The Company continually reviews its entire loan and lease portfolio for probable losses and currently believes that adequate loss allowances have been provided.

PDS Financial Corporation provides customized finance and leasing solutions, used gaming devices and digital table game products to the casino industry in the United States. PDS Financial Corporation is headquartered in Las Vegas, Nevada, and its common stock trades on The Nasdaq Stock Market under the symbol ``PDSF.''

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